AccountEdge Pro and Network Edition, Australia only
Need to pay some wages in advance? We'll show you how to pay the advance and how to withhold the amount from a future pay to "repay" the advance.
This is done by setting up a wage category to pay the advance, and a deduction category to repay the advance. Both these payroll categories are linked to an asset account which tracks all amounts advanced, repaid, and outstanding.
Let's take you through the details.
When you process payroll, enter the amount being advanced against the Advance in Pay wages category.
If you exempted the wages category from PAYG Withholding, the addition of the advance won't affect the amount of tax withheld.
When you process payroll, enter the amount being repaid against the Advance Repayment deductions category as a negative value.
<h2><i class="fa fa-comments"></i> FAQs</h2><br>
Run the Payroll Activity Detail report for employees who have been paid wage advances (Reports > Index to Reports > Payroll > Employees > Activity Summary).
- The value of the Advanced in Pay wage category will show how much has been paid in advance.
- The value of the Advance Repayment deduction category shows how much has been repaid.
Because the advance repayment is set up as a deduction, it'll show on the Pay Liabilities window. You can remove it by processing a normal Pay Liabilities transaction, but in the Pay from Account field, select the Payroll Advances asset account. This will remove the amount from the Pay Liabilities window without affecting your account balances.